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Blistering Treasury Auction: Record Foreign Central Bank Demand For 30 Year Paper
We had to triple check the Indirect print in today's 30Y auction, because at first it seemed the US Treasury had made a huge mistake, but the number showing that the Indirect take down in today's auction was a whopping 66% - this was the highest take down on record, and may have put an end to any concerns that foreign central banks have no interest in US paper, if only in the primary market (and only for the time being).
Indeed, while some were looking at the repo rate on the 30Y which was solidly positive this morning, and were expecting a poor, tailing yield, not only did this not happen, but the high yield print of 2.98% stopped 0.6 bps through the When Issued. The Bid to Cover likewise was a whopping 2.536, the highest in 2015. Directs and Dealers ended up with 7.4% and 26.6% of the auction, with the Dealer take down the 3rd lowest in history.
But once again it was the Indirect bid that was unprecedented, and begs the question: are EM central banks only unwinding reserves, i.e., selling, that are Off The Run only while purchasing OTR securities in any given auction, in an attempt to shore up liquidity? We expect the answer will be known in a few weeks time.
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just a black swan,false flag folks...keep moving
What a bunch of morons, "let's buy 30 year bonds in country that probably won't exist in 3"
..seems like a great deal to me seeing as how the fiat FRN fake dollar has less than half the value it had 30 years ago.
Inflation Calculator
http://www.in2013dollars.com/1985-dollars-in-2015?amount=100#
$100 in 1985 ? $222.99 in 2015
Between 1985 and 2015, the United States saw inflation at an average rate of 2.71% per year.
The miracle of compounding.. but in reverse.
About the bond selling in China or what false flag?
Just a few of suckers Hedge Fund buying bonds to get liquity.
hey, we're good for it...right?!
They got the heads up on the Federal Reserve rate increase, so they want dollars.
I wonder if we'll see that it was the Peoples Bank of Ghana that purchased 15x GDP in UST paper.
China dumps $200B of USTs in AUgust then goes back into the market the next month. What this tells us is that no one understands what they are doing.
All falls down.
:)
China has direct access to the treasury for buying paper. Looks to me like someone is picking up their slack.
Let's also note since the indirect bid was high, the direct bid was low, meaning JPM et al were less active during the auction.
I got some 30 yr old paper around here someplace, my highschool yearbook, wedding license, and my daily driver owners manual to name a few....its a Slant 6 225 Plymouth Volare wagon for you home gamers out there..
30 year paper, hell i think i got some Zig Zag rolling paper laying around since High School.. probably went up in value as well..
Ah the days...
Rolling yer own, the old man snarling - calling 'em all lazy 'dopeheads' (and still does to this day), threatening that if he ever caught me with anything like that I'd be outta his house on my can (when smoking pot or even a cigarette was the furthest thing from my mind, etc.)
The damage done by 'Refer Madness' carries on to this day...
It gets old, but...
http://www.gold-eagle.com/article/hidden-trillion-qe-monthly-volume
Isn't the Fed just pushing their purchases through other central banks?
Those that know don't say, those that say....
LOL!!! fear, specifically, people considering the return of their capital versus the return on their capital...
Hey maybe the Fed can finally sell some of their government paper!!!
bullshit....
Quantitative Tightening...Schiff was talking about this...interesting. Rates may go up regardless of what Ol' Yeller does (or does not do).
Of course they could just unplug the "market" until it does what they want.
Yes you think with the market so hot on these bonds that the fed could sell a bunch of what they own to lower their balance sheet.....but we all know its fake....
To the foreign governments: Hey, I have some land in Florida you'd be interested in, too...